The Hepworth Wakefield is in the running for a £100,000 prize.
The gallery is one of 10 finalists for the Art Fund Prize for Museum of the Year.
Others include the Baltic Centre for Contemporary Art in Gateshead, the Horniman Museum and Gardens in London and the Kelvingrove Art Gallery and Museum in Glasgow,
The shortlist is completed by The Beaney in Canterbury, Kent, the Museum of Archaeology and Anthropology in Cambridge and Preston Park Museum and Grounds in Stockton-on-Tees.
Art Fund director Stephen Deuchar said: “The quality and diversity of the UK’s museums and galleries is truly exceptional and the job of this prize is to draw attention to that.
“As the national charity for art, we hope that, by shining a light on the 10 finalists, we’ll encourage people to visit and celebrate these bright beacons of culture across the UK.”
The winner will be announced live on BBC Radio 4’s Front Row programme from an award ceremony at the V&A in London on June 4.
Last year, the prize was won by the Royal Albert Memorial Museum in Exeter.